If you’re thinking about buying a home, refinancing, or renewing your mortgage, you’re not alone—most Canadians have the same core questions. The challenge is finding clear, honest answers that actually help you make decisions.
Below are the 10 most commonly asked mortgage questions we hear every day—along with straightforward answers to guide you.
1. How much can I afford?
This is usually the first—and most important—question.
Your affordability depends on:
- Income
- Existing debts
- Down payment
- Interest rates
- Property taxes and heating costs
Lenders use something called debt service ratios to determine your maximum budget, but what you qualify for and what you’re comfortable with can be very different.
A good mortgage strategy balances both.
2. What’s the minimum down payment in Canada?
It depends on the purchase price:
- 5% for homes under $500,000
- 5% on the first $500,000 + 10% on the remainder (up to $1.5M)
- 20% for homes over $1.5M
If you put less than 20% down, mortgage default insurance is required.
3. Should I choose a fixed or variable rate?
This depends on your comfort with risk and your financial goals.
- Fixed rate: Stability and predictable payments
- Variable rate: Can fluctuate but often lower over time
There’s no one-size-fits-all answer—it comes down to your timeline and tolerance for change.
4. What credit score do I need?
In Canada:
- 680+ is considered strong
- 600–679 is workable with some limitations
- Below 600 may require alternative options
Your credit score impacts not just approval—but also the rates you’re offered.
5. How long does mortgage approval take?
It varies, but typically:
- Pre-approval: 24–72 hours
- Full approval (after offer): 3–10 business days
Having documents ready can significantly speed things up.
6. What’s the difference between pre-approval and approval?
- Pre-approval: An estimate of what you could qualify for
- Approval: Final confirmation after reviewing the property and full documentation
Pre-approvals are helpful—but they’re not a guarantee.
7. Can I pay off my mortgage faster?
Yes—and this is one of the most powerful strategies available.
Options include:
- Increasing payment amounts
- Making lump sum payments
- Switching to accelerated payment schedules
Even small changes can save thousands in interest over time.
8. What happens when my mortgage renews?
When your term ends, your lender will offer a renewal—but it’s rarely the best deal available.
This is a key opportunity to:
- Negotiate a better rate
- Switch lenders
- Revisit your financial strategy
Many homeowners leave money on the table by simply signing the renewal offer.
9. What costs should I budget for beyond the down payment?
Common closing costs include:
- Legal fees
- Land transfer tax
- Home inspection
- Appraisal fees
- Moving expenses
A good rule of thumb is to budget 1.5%–4% of the purchase price.
10. Do I need a mortgage broker, or should I go to a bank?
Banks can only offer their own products.
Mortgage brokers:
- Compare multiple lenders
- Find more competitive rates
- Structure your mortgage based on your goals—not just approval
The right strategy can make a significant difference—not just today, but over the life of your mortgage.
Final Thoughts
Mortgages can feel overwhelming—but most questions come back to the same fundamentals: affordability, flexibility, and long-term planning.
The key isn’t just getting approved—it’s making sure your mortgage actually supports your life and future goals.
If you’re unsure where to start or want clarity on your specific situation, working with a mortgage professional can save you time, stress, and money. Instead of navigating options alone, you can have a clear strategy tailored to you.
Have a question that didn’t make the list? Reach out anytime—getting the right answers early can make all the difference.